Assurex E&O Plus | I’m Going to Sue You!
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I’m Going to Sue You!

18 Oct I’m Going to Sue You!

Posted at 08:56h in Pearsall’s Perspective – E&O Plus Tip of the Week by

No doubt these few words can bring about some powerful emotion, and the odds are that emotion will differ from hearing the words “Great Job” or “I love your agency.” Unfortunately, these words threatening legal action have been said more than once or twice.

How do you react when a customer says this in your presence, on the phone, or via email? I had one agent tell me several years ago that he would literally throw the customer out of his office. Hmm…probably not a good idea.

One thing that is very important to realize is that “just because you get sued does not mean you did anything wrong.” It is common for most E&O cases to be settled for NOTHING! There may be some defense costs, but there was no loss payment. So once again, just because you have a customer threatening a lawsuit, it is important to stay calm and then:

  • Promptly report this matter to the designated person in your agency to handle these matters. You will probably be asked to provide them with details about your client, including name, address, phone number, and a detailed description of the claim or incident. Be prepared to provide as much detail as possible, including dates that the error allegedly was made and the client’s specific coverage in question. It is suggested this be done in one-on-one sessions.
  • Take direction from your manager / designated internal E&O contact person to determine any next steps.
  • Stay calm. This is very important as these issues can get emotional.

 

There are some definite things NOT TO DO!

  • Do not provide any recorded or written statements concerning the alleged error involving your agency.
  • Do not make any admissions of liability (you will probably feel bad but do not admit that your agency made a mistake if that is what you believe).
  • Do not make or commit to a payment.
  • Do not alter or make changes to the account/file in question without authorization from Management. Changes made after the “I’m going to sue you” notification may be revealed, which will not position the agency well.
  • Do not discuss the matter with anyone other than your manager / designated internal E&O contact person. Also, do not allow the inspection, copying, or removal of your records.

 

While hopefully, these make perfect sense, unfortunately, some of “these rules” have occasionally been broken over the years, often with disastrous outcomes.

E&O claims happen…stay calm…report it to your manager / internal E&O contact person, and let them do their job.